CALGARY, March 13 /CNW/ - Imaging Dynamics Company Ltd. (IDC or the Company) (TSX: IDL) a global supplier in the high growth digital radiography (DR) equipment market, today reported financial results for the fourth quarter and the full year ended December 31, 2007. For the 2007 year, IDC reported a loss of $0.21 per share before interest and inventory write down, for a full-year loss after interest and write downs of $0.24 per share on revenues of $32,446,401 as compared to a loss of $0.25 per share on revenues of $39,030,402 last year. For the fourth quarter, the Company reported a loss of $0.07 per share before interest and inventory write down, and a loss after interest and write downs of $0.10 per share on revenues of $8,263,103 as compared to a loss of $0.19 per share on revenues of $12,533,867 in Q4 2006.
Commenting on the 2007 results, Tom Boon, IDC's President & CEO said, "I am confident that our 2007 results are not indicative of the opportunities that lie ahead for IDC. I joined this Company because I have had first-hand experience with IDC's award-winning product, global distribution and committed employee team. IDC has all the ingredients required, for profitable growth, and our new leadership team is executing on a plan to realize the Company's potential. I look forward to delivering substantially better results in 2008."
In addition, IDC announces that M. Thomas Boon was elected to the Board of Directors effective immediately. Mr. Boon, who joined the company as President & CEO in February 2008, has 35 years of industry experience in strategic and senior management positions at companies such as AGFA Corporation and Eastman Kodak Company.
"In the short time Tom Boon has been president and CEO of IDC, we have already seen the positive impact of his leadership skills and industry experience," said Chairman Jerry C. Cirino. "On behalf of the IDC Board of Directors, I am excited to welcome Tom to the board, and draw on his successful career in achieving consistent and profitable growth in international medical technology markets."
A conference call to review the results will take place on Friday, March 14th at 8:00 a.m. EDT (6:00 a.m. MDT). To participate in the call, please dial 416.644.3417 or 800.732.6179 approximately 5 minutes prior to the conference call.
Imaging Dynamics Company Ltd.
Consolidated Balance Sheets
As at December 31 2007 2006
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Assets
Current Assets
Cash and cash equivalents $ 1,460,554 $ 5,901,192
Receivables 12,219,209 21,222,060
Inventory 14,142,710 16,556,720
Prepaids and deposits 1,100,558 930,053
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28,923,031 44,610,025
Property, plant and equipment 1,880,932 1,710,938
Intangible assets 244,912 278,511
Deferred development costs - 782,917
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$ 31,048,875 $ 47,382,391
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Liabilities and Shareholders' Equity
Current Liabilities
Short-term borrowing $ 1,260,244 $ 4,297,033
Payables and accruals 14,396,290 15,209,388
Customer deposits 345,140 580,890
Current portion of long-term debt 45,013 56,000
Warranty liability 1,098,287 817,873
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17,144,974 20,961,184
Long-term debt - 14,013
Deferred lease inducement 24,800 49,600
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17,169,774 21,024,797
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Shareholders' Equity
Share capital 65,983,374 65,466,454
Contributed surplus 4,743,668 3,473,709
Deficit (56,847,941) (42,582,569)
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13,879,101 26,357,594
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$ 31,048,875 $ 47,382,391
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Imaging Dynamics Company Ltd.
Consolidated Statements of Operations,
Comprehensive Loss and Deficit
For the year ended December 31 2007 2006
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Revenues, net $ 32,446,401 $ 39,030,402
Cost of goods sold (20,769,086) (24,983,024)
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Gross profit 11,677,315 14,047,378
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Expenses
Sales and marketing 7,941,338 9,192,053
General and administrative 4,736,341 3,870,636
Production and manufacturing 1,650,895 1,847,623
Research and development 2,636,822 2,360,160
Foreign exchange loss (gain) 1,347,633 (161,825)
Warranty 693,628 890,433
Stock-based compensation 1,338,311 1,593,263
Bad debts 1,814,953 1,094,339
Amortization of property, plant and equipment 685,004 398,722
Amortization of deferred development costs 782,917 484,769
Amortization of intangible assets 38,805 35,837
Interest 409,450 329,725
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24,076,097 21,935,735
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Loss before interest and other items (12,398,782) (7,888,357)
Inventory write down (1,975,764) (4,776,213)
Deferred development costs write down - (1,663,507)
Interest and other income 109,174 321,231
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Net loss and comprehensive loss $(14,265,372) $(14,006,846)
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Net loss per share
Basic and diluted $ (0.24) $ (0.25)
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Deficit, beginning of year $(42,582,569) $(28,575,723)
Net loss (14,265,372) (14,006,846)
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Deficit, end of year $(56,847,941) $(42,582,569)
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Imaging Dynamics Company Ltd.
Consolidated Statement of Cash Flows
For the year ended December 31 2007 2006
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Increase (decrease) in cash and cash
equivalents are as follows:
Cash flows from operating activities
Net loss $(14,265,372) $(14,006,846)
Items not affecting cash
Amortization of deferred lease inducement (24,800) (24,800)
Amortization 1,506,726 919,328
Deferred development costs write down - 1,663,507
Stock-based compensation 1,338,311 1,593,263
Warranty 280,414 352,322
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(11,164,721) (9,503,226)
Change in non-cash working capital 10,197,508 (4,011,132)
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(967,213) (13,514,358)
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Cash flows from financing activities
Proceeds from share issuances, net 448,568 14,376,926
Short-term borrowing, net (3,036,789) 1,390,943
Repayment of long-term debt (25,000) (25,000)
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(2,613,221) 15,742,869
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Cash flows used in investing activities
Deferred development costs additions - (1,182,349)
Intangible asset additions (5,206) (20,604)
Property, plant and equipment additions (854,998) (791,739)
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(860,204) (1,994,692)
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Net change in cash and cash equivalents (4,440,638) 233,819
Cash and cash equivalents
Beginning of year 5,901,192 5,667,373
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End of year $ 1,460,554 $ 5,901,192
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About IDC:
Imaging Dynamics Company (IDC) is a medical technology company and an innovative force in the fast-growing field of digital radiography (DR) technology.
IDC's X-Series of direct capture technology replaces conventional film-based X-rays and provides a cost-effective alternative to cassette based film or computed radiography (CR) systems.
Each IDC DR solution provides high resolution radiographic images in the digital format required for today's electronic medical record networks, all without the use of film, environmentally harming chemicals, cassettes or expensive imaging plates.
IDC is based in Calgary, Alberta, Canada.
Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.